ISLAMABAD: The federal government is set to announce a New Year gift for the motorists tomorrow. From midnight on Wednesday, people across Pakistan may receive financial relief as the federal government considers reducing petroleum product prices from January 1.
According to official sources, an initial working paper on fuel prices has been finalised, proposing a cut of Rs 10 per litre in petrol prices. The move aims to ease pressure on household budgets amid persistent inflation.
In addition, sources said the government is considering a reduction of Rs8.59 per litre in the price of high-speed diesel. If approved, the decrease would benefit transporters and commuters, as diesel prices directly affect freight costs and public transport fares. Officials indicated that the proposal reflects recent changes in global oil prices and exchange rate trends.
Relief expected for kerosene and light diesel users
Alongside petrol and diesel, the working paper proposes a Rs9 per litre reduction in kerosene oil prices and a Rs6.62 per litre cut in light diesel oil. These fuels are widely used in rural areas and by lower-income households, particularly for cooking and heating purposes. Officials in Islamabad said the proposed cuts could provide targeted relief to vulnerable communities.
The Oil and Gas Regulatory Authority is expected to forward the finalised working paper to the government on Tuesday. Afterward, the Finance Ministry will review the proposal while considering overall revenue needs and fiscal targets. Sources added that the final decision will be made after approval from the prime minister.
Earlier this month, on December 15, the government reduced the price of high-speed diesel by Rs14 per litre while keeping petrol prices unchanged for 15 days. Following that decision, diesel was priced at Rs265.65 per litre, down from Rs279.65, while petrol remained at Rs263.45 per litre.
Once the government reaches a decision, the Petroleum Ministry will issue a formal notification announcing the revised prices. Officials said that if no additional petroleum levy or taxes are imposed, consumers will receive direct relief at the start of the New Year.
